Paramount Equity Mortgage, founded in 2003 by Hayes Barnard, Jason Walker and Matt Dawson.[5][6] The company was incorporated in California to provide residential mortgage loans.[7] Although they launched in California's Sacramento Valley, the company lends nationwide.[8]
In 2006, the founders launched an insurance company focused on auto and home insurance. After over ten years offering insurance services, the company sold its insurance company to Brown and Brown.[year needed][citation needed]
In 2009, Paramount Solar was established.[7] In 2013, Paramount Solar was sold to SolarCity (now Tesla Energy) in a transaction valued at approximately $120 million.[9] In 2011, the company took on an equity investment from Guthy-Renker.[10]
In December 2017, Paramount began originating residential solar loans and later rebranded as Loanpal.[7]
In 2019, Loanpal announced a partnership with PenFed Credit Union.[11] In 2019, Loanpal was responsible for 30% of all new residential loans in the U.S.[11][12]
In 2020, they launched their online platform.[13][14]
In June 2020, Goldman Sachs securitized $459 million worth of Loanpal loans they had previously purchased and expanded their warehouse facility to $300 million with Loanpal. Goldman Sachs also committed to buying $320 million in loans from Loanpal.[15] By October 2020, the company had funded over $4.5 billion in solar loans[16] and closed a securitization of $434 million worth of Loanpal loans in November 2020[17] and was responsible for 41% of the solar loan market in the U.S. and was the top solar lender in the country.[18]
As of December 2023 John Shrewsberry, former CFO of Wells Fargo, is chief financial officer.[26][27] And Daniel Lotano, former president of EverBright, as chief strategy officer.[28]
Ownership structure
The company offers consumers access to a variety of residential lending products including mortgages, solar financing and home improvement loans.[29] As of 2023, the company has loaned more than $23 billion to over 380,000 households upgrading to sustainable power across 50 states. The default rate on their loans is less than 1%. The company is an approved seller-servicer of both government sponsored entities, Fannie Mae and Freddie Mac, and has raised over $2.25 billion in funding for its consumer finance loans.[30]
Controversy
As of 2024, dozens of litigation and arbitration cases are in process in which GoodLeap customers have alleged they were tricked into taking out onerous loans, were misled about the terms of the loans, or were signed up for a loan without their knowledge.[31]
On March 8, 2024 the Minnesota Attorney General filed suit against GoodLeap and three other lending companies (Sunlight Financial, Solar Mosaic, and Dividend Solar Finance—a subsidiary of Fifth Third Bank), the lawsuit alleges the lenders violated Minnesota state laws against deceptive trade practices, deceptive lending, and illegally high rates of interest.[32][33]
